The cost of living in the EU: how much do you need?

Abstract

In a previously published policy brief, we made a case in support of Jean-Claude Juncker’s notion that the social pillar of  European integration must entail a minimum income standard for low-income workers in EU countries (Fabo 2018). Specifically, the eastern – and to some extent southern – EU member states simply fail to guarantee an adequate income for a full-time worker to secure a decent living standard, even when only basic needs are considered. 

Key points:

— The EU should support the development of a minimum income standard that would allow for adequate social participation.
— The standard at-risk-of-poverty threshold does not reflect the actual living costs.
— Alternative indicators demonstrate that the disposable incomes of low-earning households are not sufficient to make ends meet in the southern and eastern EU countries.
— Economic policies that accelerate the real growth of low-earning households’ income should be promoted.